British luxury yacht manufacturer Princess Yachts has reported a return to profitability for the year ended 31 December 2025, following its post-acquisition transformation programme.
The Plymouth-based boatbuilder has posted an adjusted EBITDA of £35.9m and an operating profit of £17.6m for 2025. The performance represents a £60.4m turnaround in adjusted EBITDA over a two-year period, following a loss of £24.5m in 2023.
The turnaround is particularly significant in light of a soft leisure marine market and several UK boatbuilders struggling in the current market conditions.
Adjusted EBITDA increased by approximately 167 per cent to £35.9 million for the year ended 31 December 2025, compared with £13.4 million in 2024. Operating profit reached £17.6 million, representing a £25.7 million improvement from the £8.1 million operating loss reported in the previous year, while profit before tax was £9.4 million, compared with a £17.0 million loss in 2024.
Importantly, Princess also says profitability is continuing to strengthen in the first half of 2026.
Restructuring at Princess fuels recovery
Revenue for 2025 stood at £321.8m, down from £378.1m in 2024. The company attributed the lower revenue to reduced production volumes, softer market conditions, and a deliberate strategy to align capacity with demand.
The results follow operational restructuring initiated after Princess Yachts was acquired by private equity firm KPS Capital Partners in 2023. Over the course of 2025, the manufacturer focused on improving manufacturing productivity, build quality, supply chain management, and operational cost discipline across its UK facilities.
The operational restructuring period was challenging. In December 2024, the firm made around 250 layoffs at its Plymouth shipyard, citing market challenges. In August 2025, nearly 1,200 Princess workers secured a 6.5 per cent pay rise after voting in favour of industrial action, and by November 2025, the boatbuilder warned that a reduction in orders was resulting in the manufacturer looking at cutbacks.
Positive signs for 2026
Princess says the financial improvement has importantly been driven by healthier underlying business performance rather than increased production, with gross profit per yacht continuing to improve during 2025 as a result of cost control and operational improvements.
Will Green, chief executive officer of Princess Yachts, says: “2025 was a critical year for Princess and these results demonstrate the significant progress we have made in strengthening the company.
“When you look back to 2023, the scale of that progress is clear. We have moved from an adjusted EBITDA loss of £24.5 million to a profit of £35.9 million in just two years, an improvement of more than £60 million.”
Green, who was appointed CEO in 2023, continues: “That has come from a relentless focus on improving how we operate across the business: improving manufacturing efficiency, quality and cost control, while matching production more closely to market demand. It has been a disciplined, operationally focused turnaround and these results give us confidence that we have now completed that phase of the journey.
“Importantly, our momentum has continued into 2026. In the first half of the year, adjusted EBITDA increased again, despite producing fewer yachts. That is further evidence that we have created a more efficient and resilient business.
“Our focus now is firmly on the future. We continue to invest in our people, our facilities and one of the strongest new-product programmes in our history. The next phase for Princess is about building on this stronger foundation, delivering sustainable, quality profits and continuing to create the world’s finest yachts whilst delivering an exceptional customer experience for owners around the world.”
Green reflected on 2026’s opening quarter and the positive company trajectory in an interview with MIN in May 2026.
UK boatbuilder expands portfolio and outlines growth strategy
Alongside the transformation of its operations, Princess Yachts has continued to invest in its future product portfolio. Product development expenditure increased to £12.0 million in 2025, from £10.9 million in 2024, supporting a rolling five-year product programme targeting three new model launches each year.
During 2025, Princess completed the first F58 and V65 and commenced construction of the all-new X90. The company also unveiled C Class, an important expansion of the Princess portfolio and the first to be offered with outboard propulsion. Most significantly of all, 2025 saw the unveiling of the Odyssey brand, marking the company’s return to the 30m+ yacht market from 2029.
That product programme has continued to gather pace during 2026. The all-new X90 made its world debut at the Cannes Yachting Festival in September 2026, while the C48 Open, the first model from the new C Class, will join the Princess line-up at the Fort Lauderdale International Boat Show in October.
Despite continued economic and geopolitical uncertainty, Princess Yachts says it is entering the next phase of its strategy with a stronger operational platform, a robust order book with an increased proportion of yachts committed to end customers, and increasing investment in an expanding product portfolio.
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